India, Nov. 1 -- Political influence, defaults and weak oversight have tested trust in India's banks.

As the festival of Diwali approaches, an old tradition comes alive in business establishments, shops and homes across the country. Traders worship their new account books, offer prayers to Lakshmi and Ganesha, and seek prosperity for the coming financial year. The message of this tradition is not merely to earn wealth, but to earn it honestly, maintain transparent accounts and preserve trust in financial dealings.

However, when we look at the country's banking system, an uncomfortable were distributed under political patronage. Whether a bank is government-owned or privately owned, the real issue is not who owns it, but its accountabili...